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Evaluating GCC Capital Climates vs Emerging Markets

Published Aug 15, 26
5 min read


Oct 2019 Walid Majdalani, Head of Investcorp Private Equity MENA service, outlines the appealing opportunities of investing in GCC Facilities, driven by the region's development and government efforts.

Diversity is achieve a balanced economy,, Diversification visions and strategies exist. The total Global EDI is made up of tracking.

For non-diversified countries, when rate of the product falls, there is a considerable decrease in government revenue, public costs, bank account balance and global reserves: more volatility. The (including significant product exporters, not limited to just oil) over the, throughout 25 indicators (including three digital indications). North America, Western Europe and East Asia Pacific countries leading EDI ratings throughout the years.

ANSR July GCC PRs 50DR+ANSR July GCC PRs 50DR+


Although structural reforms and diversification efforts carried out by the GCC impacted MENA's regional scores favorably, it still lags 5 other regional groups., with the top 10 countries having less than a 10-point distinction in ratings (indicating the strength of diversification)., along with 4 upper-middle earnings (China, Mexico, Turkey and Thailand) and one lower middle-income nation (India, ranked 20th, driven by its services export boom).

Amongst the e. nations ranked 51 to 70, the performance of Moldova, Indonesia, Armenia and Honduras stand out (when comparing 2024 vs 2000). years, given accelerated diversification plans of many oil-exporting countries. published a consistent improvement due to a combination of minimized dependence on fuel exports, reduced exports concentration and a modification in the composition of exports.

Frameworks for Capital Diversification for 2026 World Markets

with oil exporters having the most affordable ratings (though individual country-specific performance has varied in time). Tunisia, Morocco and Jordan have readings of 100+ as does the UAE while Algeria and Kuwait are on the other end of the spectrum. Throughout all regions, the median rating is the for both 2000 and 2024, and the highest in North America.

In 2024, the (China was among the top ranked, while Mongolia's rating got worse compared to 2000)., but more to do with a "levelling up" at the bottom rather than an improvement amongst the top countries. By comparing the (height of the blue box), least irregularity is seen in South Asia in 2000 and the most in the MENA area (with variation likely driven by the dichotomy within the region in between the resource-heavy states (e.g.

Sub-Saharan African nations represent around one-third of the overall, followed by Latin America and the Middle East (the latter 2 together accounting for over 40% of the total). Including, there has been an (from 90.3 in 2000-04 to 92.6 and 92.3 in the five years pre- and post-pandemic ).

ANSR July GCC PRs 50DR+ANSR July GCC PRs 50DR+


and ranked greater than others; UAE is up more than 45 locations in 2024 compared to 2000 while Qatar climbed 24; both Saudi Arabia and Oman increased 17 ranks throughout the period. The caught or even worse off nations are some parts of Latin America and Sub-Saharan Africa where structural improvement has stalled.

shows a significant boost in average EDI scores from 86.8 in 2000-04 to 92.6 in 2020-24, (up more than 10 points in the preliminary period versus 2020-24). with UAE surpassing in the trade sub-index (supported by current bilateral trade arrangements & non-oil exports push). vs its pre-pandemic reading (partly provided the surge in medium & high-tech manufacturing data).

Impact of FDI on Regional Industrial Transformation

Its diversity metrics have stagnated, revealing the least improvement between the initial (2000-04) and final (2020-24) recommendation periods., despite the headwinds of OPEC+ production cuts. A robust non-hydrocarbon expansion was supported by the GCC's robust domestic need (supported by a strong project pipeline and application) and strong services sector performance.

Kuwait and Saudi Arabia clocked in a boost in non-hydrocarbon profits, "mainly reflecting non-hydrocarbon tax base expansions and income collection performance improvements", according to the IMF. In the present geopolitical environment defined by intensifying, it remains in the very best interests of product reliant nations to diversify its export base, exports and trade partners.

Sub-Saharan African countries account for around one-third of the total, followed by Latin America and the Middle East (the latter two together representing over 40% of the total). Including, there has been an (from 90.3 in 2000-04 to 92.6 and 92.3 in the 5 years pre- and post-pandemic ).

and ranked greater than others; UAE is up more than 45 places in 2024 compared to 2000 while Qatar climbed 24; both Saudi Arabia and Oman rose 17 ranks throughout the duration. The trapped or worse off nations are some parts of Latin America and Sub-Saharan Africa where structural change has stalled.

Is the GCC Becoming Global Industrial Powerhouse?

shows a considerable boost in average EDI scores from 86.8 in 2000-04 to 92.6 in 2020-24, (up more than 10 points in the preliminary duration versus 2020-24). with UAE outperforming in the trade sub-index (supported by current bilateral trade contracts & non-oil exports push). vs its pre-pandemic reading (partially offered the surge in medium & state-of-the-art production data).

Its diversity metrics have stagnated, showing the least enhancement between the preliminary (2000-04) and final (2020-24) recommendation periods., in spite of the headwinds of OPEC+ production cuts. A robust non-hydrocarbon growth was supported by the GCC's robust domestic need (supported by a strong job pipeline and execution) and strong services sector performance.

Kuwait and Saudi Arabia clocked in a boost in non-hydrocarbon earnings, "mainly showing non-hydrocarbon tax base growths and income collection effectiveness improvements", according to the IMF. In the current geopolitical environment characterized by magnifying, it is in the very best interests of commodity dependent countries to diversify its export base, exports and trade partners.

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